Brazil to negotiate with China on dollar risks

Bilateral trade settlement of respective local currency The Brazilian president, Lula da Silva (Luiz Inacio Lula), will carry out a three-day visit to the country from today.　　On the eve of his visit to China in Friday, Lula said he planned to discuss the use of the renminbi and the Brazilian real in bilateral trade during a meeting with Chinese President Hu Jintao next week.　　Lula's speech in Caijing said he asked why important countries such as China and Brazil had to use the dollar rather than their currencies as a reference currency.　　Lula also said that it would be absurd to use the dollar as a reference currency and to give a country the power to print such a currency.　　China's central bank governor Zhou Xiaochuan has previously proposed a supranational monetary system, and many countries have called for reform of the global monetary system, China, Russia and other countries also urged to diversify the international monetary system. Professor Zhang Tiegang, dean of International Cultural exchange at the Central University of Finance and Economics, said that the use of the renminbi and Brazilian real in bilateral trade between China and Brazil was due to the weakening of the dollar and the acceleration of the diversification process of the International monetary system, "the exchange of bilateral trade between the two countries It is also a transition from RMB to hard currency. "International currency diversification and the renminbi's process of becoming an international currency are not a Zhang Tiegang," he said. "Zhao Xijun, deputy dean of Renmin University of China, said to this reporter that in international trade, the use of that national currency for valuation, is mainly to consider the currency as an equivalent exchange of stability." The era of the dollar linked to gold, the tradition of international trade is denominated in the dollar, but then the dollar and gold decoupling, and then to the previous subprime crisis, the stability of the dollar weakened, the U.S. dollar gradually lost confidence, so that countries trade needs a more stable currency to appear. Professor Zhao Xijun that the Brazilian President Lula's proposal is due to increasing risk.